Before a proper discussion on how to get preapproved for home loan, it’s important to define mortgage loan terms and conditions. In very simple terms, a mortgage is the type of loan that real estate buyers will use as a form of financing for their property purchase. For buyers who already own property, mortgage loans […]
Types of Mortgage
What Is Negative Amortization?
Negative amortization is a financial term, which you may also encounter as NegAm, deferred interest, or graduated payment mortgage. To understand how negative amortization works, first you need to understand how to define amortization. This is the process of decreasing a specific amount or accounting for it, within a specific period of time. It follows […]
Truly Understanding FHA Loans
FHA loans (i.e. loans from the Federal Housing Administration) have seen their fair share of dramatic swings over the past few years. These have largely been the effect of the subprime lending boom and ensuing market collapse. During the times of the boom, FHA mortgages became very rare, since just about anyone qualified for a […]
Home Buyers’ Most Pressing Mortgage Questions Answered
Buying a new house can be a source of great anxiety about all kinds of things, and especially about the legal implications of the contract, as well as the rights and options you have as a buyer. Not many home owners can afford a whole legal team to have their backs and sort out all […]
Applying for a Mortgage Loan When Pregnant: A Delicate Situation
As anyone who’s ever gone through the home buying process or the process of refinancing a mortgage, the steps to buying a house aren’t always straightforward and simple. This especially applies to income earners who plan on switching jobs, quitting, or taking temporary leave. For instance, a mother-to-be should not have more trouble than a […]
ARMS (Adjustable Rate Mortgages)
With everything that happened with the economy in the past several years people are staying away from ARMs because of the perceived risk. In a recent article titled “Don’t take out a fixed-rate mortgage” that appeared in the Wall Street Journal the author makes a point that for a very large percent of cases the expense of […]
Denied A Mortgage?
An articles I recently read (that can be found here) makes some good points…There are a few things I want to point out and add. -Have a conversation with your Loan Officer before you start your application process. He or she should be able to tell you what their bank’s guidelines are and help you decide […]
Mortgage Rates
Mortgage rates strongly affect the process of purchasing a house since they directly dictate how much your monthly payments will be. In order to fully understand where these rates come from and what makes them go up and down, you really need a finance or economics degree. Since very few people have time to actually […]